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2010 (1) TMI 755 - AT - Income TaxApplicability or otherwise of s. 263 - Advertisement expenses incurred by the appellant are attributable to contract activity - CIT invoked s. 263 for the reason that business of the assessee did not commence and, therefore, the expenses claimed by the assessee with regard to advertisement and publicity could not be claimed in the year under consideration - Held that:- it is only in the case of "lack of enquiry" that such a course of action would be open and while holding so their Lordships have considered the earlier decision of Hon'ble Delhi High Court in the case of Gee Vee Enterprises (1974 -TMI - 39778 - DELHI High Court). - Thus, applying the ratio laid down by the Hon'ble High Court in the case of CIT vs. Sunbeam Auto Ltd. (2009 -TMI - 204642 - Delhi High Court), the order of CIT under s. 263 cannot be held valid as present case is not a case of "lack of enquiry", order passed by CIT under s. 263 is quashed, appeal allowed.
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